TikTok Agrees to $400M Settlement Over Children Privacy Lawsuit
TikTok has finalized a $400 million class-action settlement addressing federal regulatory claims regarding underage user data handling and default privacy settings.
Mandating Zero Targeted Advertising for Users Under 16
TikTok has agreed to pay $400 million to resolve a high-profile joint lawsuit led by the Federal Trade Commission and state attorneys general. The suit alleged that TikTok breached Children’s Online Privacy Protection Act (COPPA) rules by creating accounts for children without verifiable parental consent.
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Implementing Cryptographic Age Verification and Parental Controls
In addition to financial restitution, the settlement obligates TikTok to restructure its recommendation engine algorithm for teenage users, permanently disabling personalized behavioral advertising for accounts registered to users under 16 years old.
TikTok must also submit to annual third-party privacy audits and implement standardized biometric and identity verification gates to prevent underage registration.